Carter: We risk failing people without investment
Free early legal advice at an average cost of £3,300 per case saved the government £9,100 in 2023 – or £2.71 for every £1 spent – a new report has calculated.
For the estimated half a million people receiving free legal advice, this equated to a saving of around £4.5bn.
Researchers said the cost-of-living crisis, pandemic and housing shortage had fuelled demand for early legal advice and many providers were helping increased numbers of people with poor mental health.
The value of justice for all report by research and analysis consultancy Pragmatix Advisory, funded by the Access to Justice Foundation and Bar Council, aimed to assess the economic value of the UK’s free legal advice sector.
It said: “Spending to support those in crisis is usually inevitable, regardless of whether free legal advice is given. The immediate financial impact to government varies based on a client’s needs and the level of support required.
“Where a person is in need of specialist advice, our estimates suggest that the Treasury incurs an average cost of £12,400 in the first year without advice, compared to £3,300 when free legal advice is provided.” These costs could be benefits, providing temporary accommodation and other support.
The benefits included easing pressure on courts and tribunals “through improved efficiency and fewer litigants in person”.
The report was based on interviews with staff at more than 20 free legal advice providers, half of which were funded by the Access to Justice Foundation, and a survey of 54 organisations, which helped more than 129,000 people in 2023.
The research suggested that, when clients sought free legal advice, they had reached a point where their situation could not continue as it is.
“Therefore, there is no ‘business-as-usual’ scenario for these cases. Whether or not they receive free legal advice, what happens next incurs a cost to government.
“With the current cost-of-living pressures following hot on the heels of the pandemic, we expect that more individuals will be experiencing crises.
“Without access to free specialist legal advice, the impacts on households and in turn the costs to government could be significant.”
As well as the costs of providing free advice and of “what might otherwise have occurred”, researchers said their model took into account other factors – it did not assume that everyone who received advice had a successful outcome. The model also allowed for a quarter of people to resolve their issue without legal advice, and for a further quarter to return with another issue in every subsequent year.
Researchers said a majority of people (51%) seeking early legal advice had a longstanding illness or disability, and the number of issues per person seeking advice had risen from 4.34 before the pandemic to 4.86.
“In particular, many advice providers we interviewed said they were supporting increasing numbers of people experiencing poor mental health, as the strain on mental health services meant they were not able to access the support they needed.
“This is happening at a time when legal aid cuts, out-of-date fee structures and unhealthy work environments are leading to talent deficits and staff shortages across the advice sector.”
The broader benefits of early advice included higher employment rates, improved health and wellbeing, and reduced reliance on benefits. People with access to free specialist legal advice were projected to spend 1.6 fewer years in crisis situations compared to those without it.
Sam Townend KC, chair of the Bar Council, commented: “The report makes plain how a properly funded free legal advice sector would make a huge difference to the hundreds of thousands of people behind each case, those working in the system and the public purse in just one year alone.”
Clare Carter, chief executive of the Access to Justice Foundation, added: “As economic challenges persist and the demand for free legal advice grows, the role of free legal advice has never been more critical.
“Without increased and sustained investment, we risk failing the people, places, and communities who need us most. “
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